Most stock markets in the Gulf ended higher on Wednesday as investors shrugged off concerns around the US government’s debt-ceiling negotiations.
US President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Monday prepared for the critical debt-ceiling talks, with a little more than two weeks to go before the government could run short of money to pay its bills.
Saudi Arabia’s benchmark index gained 0.6%, driven by a 3.6% jump in the country’s biggest lender Saudi National Bank and a 3% increase in Riyad Bank.
Most Gulf bourses fall on lower oil prices, ahead of US debt-limit talks
The Saudi stock market remains in a positive direction overall, but is starting to see some challenges to maintaining clear gains, said Gabi Dahduh, Senior Relationship Manager at CAPEX.com.
“The main index could be weighed by the deteriorating conditions in oil markets over the short to medium term.”
Prices of oil - a key catalyst for the Gulf’s financial markets - were steady after a surprise rise in US crude inventories stoked demand concerns as economic worries competed with a tighter supply outlook for later in the year.
However, oil giant Saudi Aramco finished 0.9% lower as the firm went ex-dividend.
The Qatari index outperformed the region to close 2% higher, as most of the stocks on the index were in positive territory including Qatar Islamic Bank, which jumped 4.5%, following media reports that the Gulf state is planning to boost the stock market to attract foreigners.
Dubai’s main share index snapped a four-session losing streak to finish 1.6% higher, with Emirates Central Cooling Systems advancing 3%.
In Abu Dhabi, the index rose 0.5%.
Outside the Gulf, Egypt’s blue-chip index declined 1.1%, with Sidi Kerir Petrochemicals Co retreating 6.7%.
According to Dahduh, the Egyptian bourse stabilized to a certain extent but continued to record losses as international investors’ remained sellers due to global concerns and a declining risk appetite.
SAUDI ARABIA rose 0.6% to 11,278
ABU DHABI up 0.5% to 9,526
DUBAI gained 1.6% to 3,566
QATAR advanced 2% to 10,682
EGYPT lost 1.1% to 16,844
BAHRAIN was up 0.1% to 1,940
OMAN down 0.3% to 4,695
KUWAIT slipped 1.1% to 7,418
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